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General TradingD
Direct Quotation
A direct quotation in forex expresses the exchange rate as the amount of domestic currency needed to buy one unit of a foreign currency. For example, for a US-based trader, a direct quote for the euro would be USD/EUR = 1.10, meaning it costs $1.10 to buy one euro.
Example
“For a US-based trader, seeing a direct quotation of 1.10 for the euro means they need $1.10 to purchase one euro on the spot market.”